Ford Motor Credit and General Motors object to some specifics within a proposed sale of the Reagor-Dykes Auto Group.

Ford Credit's filing states the most effective way to maximize value for creditors in this bankruptcy is sale of substantially all of Reagor-Dykes assets, including assumption and assignment of its contracts, including sales and service agreements with manufactures and certain leases.

However, Ford Credit is concerned with approving a stalking horse bidder before the proposed bidder executes a binding asset purchase agreement. KamKad Automotive Group is the potential "stalking horse bidder", with a price of more than $25 million. The Reagor-Dykes Auto Group has Ford dealerships in Plainview and Lamesa.

Ford Credit's filing states it should be included among parties determining who is a qualified bidder. It currently is not. This is similar to Gulf States Toyota's filing last week that it should be involved in determining who takes control of the Reagor-Dykes Toyota dealership in Plainview. Gulf States Toyota's filing also noted the dealership agreement for that location expires before the proposed sale date of late November.

Also, Ford Credit argues it is not clear whether the sale includes franchise agreements with various vehicle manufactures, writing "these Franchise Agreements are the most essential/valuable executory contracts that are being assumed and assigned and the OEMs need to be placed on notice that this is part of the transaction."

Ford Credit's filing also notes, pending resolution of the specifics outlined above, it supports sale but believes it should happen sooner.

General Motors filed objection to the bid process specific to Reagor-Dykes Chevy in Floydada. GM states it must approve any operator of a dealership; Reagor-Dykes cannot transfer the right to operate a franchise through this proposed sale.

GM's filing states "GM has unfettered discretion in approving dealers, and that such a process is lengthy, complex, multi-faceted, and never undertaken lightly. That a potential purchaser of Debtors’ assets might operate other automotive dealers alone is insufficient."

General Motors also states the Reagor-Dykes Chevy dealership in Snyder is not among the Reagor-Dykes companies that filed for bankruptcy. But, if it were to file for chapter 11 protections, General Motors would have the same objection before the bankruptcy court.

As granted by the court last month, a chief restructuring officer is effectively running most of Reagor-Dykes operation. General Motors argues it has not authorized any third party; it states employment of a CRO is breach of its dealer agreement. General Motors writes this alone is enough to terminate the Floydada dealership.

According to this filing, "the value to GM of any dealership operations at Floydada has been irreparably harmed by the inability to operate, leading consumers to take their business elsewhere and harming GM’s interests."

The U.S. Bankruptcy Court has hearings scheduled Tuesday and Wednesday in this case.